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SINGAPORE – About 250,000 employees suffered pay cuts between March and September, according to notifications received by the Ministry of Manpower (MOM).
This is about 7 percent of the estimated workforce of 3.37 million people here in September, excluding foreign domestic workers.
As of the end of September, the ministry had received about 7,300 notifications about cost-cutting measures from some 5,000 employers, according to a report on Thursday. Since March, employers with 10 or more employees have had to notify MOM if they take cost-saving measures that affect employees’ monthly wages.
The Tripartite Alliance for Fair and Progressive Employment Practices proactively engaged some 900 employers whose pay cuts affecting about 52,000 employees appeared to be excessive, and about 330 of them agreed to review their measures. The rest could justify the measures taken as necessary for business survival.
MOM received around 580 complaints between May and August related to savings measures taken by about 470 employers, according to the report. The vast majority were able to resolve their disputes amicably.
For example, a local hotel manager filed a complaint against his employer because he felt that he should receive at least 75 percent of his salary, since his employer received financial support, for example from the Employment Support Program.
The employer explained to MOM that it was operating at a loss even with financial support from the Government. The hotel management explained the situation to its employees and requested their agreement on cost saving measures.
MOM assessed that the measures were fair and reasonable to keep business operations sustainable, and the complainant accepted the explanation and withdrew her complaint.
MOM also received complaints involving about 80 employers regarding the amount of downsizing benefits they had awarded. It found that more than 60% of them had provided fair and reasonable downsizing benefits. The others had real financial difficulties.
To date, no employer has been found intentionally refusing to channel government support for proper use, according to the report.
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